New Zeitgeist Analysis Uti´s World Wide

New  Zeitgeist analysis

In the last 15 years the maximum price that the stock get was the third of March 2006   35.99 dollars per action, today the action is $7.12 dollars in the   fourth of November of 2015.

So what made UTI worldwide action dropped 5.04 times its price in the last 3552 days since its biggest adjusted price record (03/03/2006), this are some drivers that will help us understand that, and also explain the next step for the company and what’s going too happened with the Company.

Let’s define drivers in two categories, the external and macro drivers, and the internal factors that can explain that prices.

The Main factors in the industry:

The Industry is dynamic and global and there are tons of factors to evaluate in this sector, Instead of talking about random factors, we made this analysis based on some reports about the Environment and the trends that will affect this business in general

Based in PWC analysis and surveys the 5 things that concern more the CEOS of a logistics company are:

1. - The lack of growth in developed economies:

2. - The changes in the fuel price:

3. - The Tax regulations:

4. - Exchange rate volatility:

5.-Shotage of truck drivers:

More about each of this concerns:

1.- “The lack of growth in developed economies” this is  the main driver and also concerns for any company because from this the sales came from , and is also important because the top 5 countries with more trade are also power economies , if you add the trade from one of each only  this 5 countries carry almost 40% of the global trade and a shortage of this volumes  of any of this 5 countries (China, USA, Germany, Japan , France) can make a huge impact in any logistic company.

2. - The changes in the fuel price: This Constrain is Important for the Profitability in Any logistic company, the average cost of the diesel in a shipment of a cargo is around of 25 % of the cost of the service, this is huge and this really concerns the managers of the logistics companies, because the volatility in the price of oil affects directly the Gross margin of any of this companies.

3. - The Tax regulations: This issue is very importat because its constantly changing and s Claudio Fisher Ernes & Young  meber said :” Ignoring  the latest developments in taxes  or nt being compliant with indirect taxation  is deffinitly an expensive oversight  for companie  whete they are active in regionl markest or global markets.

Even if the Global trade is changing fast and growing because of the develop economies demand it ,  the glabal trade still  faces many bureocracy and restrictive laws around the world

But contries are trying to change that since 2008 the G-20 contries removed 282 of trade restitngign measure but   just 282 over  the 1244  that have been created  since 2008

Why this is an issue  ?  Because the cost just this regulation and extra taxation cost aroun of 10%  od the total trade cost  in the developed economies and aroud of 13 % to 15% in the developing ones.